Customs Act, 1962 Section 92 — Entry of coastal goods
Customs Act, 1962 · Entry of coastal goods
Plain-English Explanation
Overview
Section 92 of the Customs Act, 1962, governs the procedural requirements for the entry of coastal goods. It essentially mandates that a consignor of coastal goods must declare their movement via a bill of coastal goods to the customs authorities. This ensures proper monitoring and accountability of goods transported within India's territorial waters.
Who Does This Apply To?
This section primarily applies to:
- Consignors of coastal goods, i.e., the party sending the goods from one Indian port to another.
- Proper Officers appointed by the customs department to oversee and administer coastal goods movement.
How It Works
The process outlined in Section 92 involves the following steps:
- Bill of Coastal Goods: The consignor must create a bill of coastal goods. This isn't just any document; it must be in a prescribed form. Rule 3 of the Coastal Goods Rules, 2018 outlines the forms and other requirements.
- Presentation to Proper Officer: The consignor is then obligated to submit this completed bill of coastal goods to the designated proper officer. This submission constitutes the formal 'entry' of the coastal goods.
- Declaration of Truth: A critical part is the declaration. The consignor, at the foot of the bill, must personally sign a declaration attesting to the accuracy and truthfulness of the information contained in the bill of coastal goods. This puts the onus of accuracy on the consignor and carries legal weight.
Important Conditions & Exceptions
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Condition 1: The bill of coastal goods must be presented before the departure of the vessel carrying the goods. Delays in submission can attract penalties under other provisions of the Customs Act, 1962.
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Condition 2: The form and manner of the bill of coastal goods are prescribed by the Central Board of Indirect Taxes and Customs (CBIC). It is crucial to use the correct, updated form to avoid non-compliance.
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Exception: While Section 92 outlines the basic procedure, certain categories of goods or specific movements might be subject to exemptions or simplified procedures as notified by the government from time to time. For example, certain small value goods might be exempted from detailed documentation requirements.
Practical Example
Consider a scenario where "ABC Textiles" in Chennai wants to ship a consignment of cotton fabric worth Rs. 5,00,000 to "XYZ Garments" in Kolkata via sea. ABC Textiles, as the consignor, must prepare a bill of coastal goods in the prescribed format. This bill will detail the description of the goods (cotton fabric), quantity, value (Rs. 5,00,000), origin (Chennai), destination (Kolkata), and details of the vessel. The bill must be presented to the proper officer in Chennai before the vessel departs. ABC Textiles' authorized signatory must then sign the declaration at the end of the bill, confirming the accuracy of the details.
Key Amendments
No major amendments since enactment. However, the Coastal Goods Rules, 2018 have been amended several times which impact the formats and procedures related to the bill of coastal goods under section 92. Tax professionals should stay updated on these rule changes.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What are 'coastal goods' under the Customs Act, 1962, and is Section 92 applicable to all goods transported within India?
Coastal goods are defined generally as goods transported from one Indian port to another. Section 92 applies specifically to the entry of these coastal goods. However, not all goods moved within India are considered 'coastal goods'; the transportation must occur via sea or inland waterways, making Section 92 inapplicable to goods moved via land or air.
Who is considered the 'consignor' responsible for filing the bill of coastal goods under Section 92(1)?
The consignor, responsible for presenting the bill of coastal goods, is the person or entity who causes the coastal goods to be transported from one port to another. This is generally the shipper or the party who arranges for the transport, even if they don't physically own the goods. Clarity on this is crucial to avoid penalties related to non-compliance.
What information must be included in the 'bill of coastal goods' prescribed under Section 92(1) and the associated declaration?
The bill of coastal goods must include details like the description of the goods, quantity, value, origin, destination port, and vessel details. The declaration under Section 92(2) requires the consignor to verify the truthfulness of the information provided in the bill. Prescribed form details are laid out in circulars or notifications issued by the CBIC and should be adhered to.
What are the potential penalties or consequences for failing to comply with the requirements of Section 92 regarding the entry of coastal goods?
Failure to present a bill of coastal goods or providing false information can lead to penalties under the Customs Act, 1962. These penalties can range from monetary fines to seizure of the goods, depending on the nature and severity of the offense. Further, legal action may be initiated under applicable provisions of the Act, and the goods could be subjected to confiscation.
Are there any exemptions from filing a bill of coastal goods under Section 92, or are there specific cases where simplified procedures apply?
While a complete exemption is rare, simplified procedures may exist for specific types of coastal goods or consignors, often detailed in CBIC circulars or notifications. For example, certain goods or specific shipping arrangements may qualify for expedited clearance or reduced documentation requirements. It is essential to consult current notifications to check applicability to your situation.
How does Section 92 interact with other sections of the Customs Act, 1962, especially regarding assessment and clearance of coastal goods?
Section 92 primarily deals with the 'entry' aspect of coastal goods. Other sections of the Act, such as those relating to assessment (if applicable to coastal goods), examination, and clearance, come into play subsequently. Even though coastal goods may not always be subject to import duties, the compliance with Section 92 and related provisions is crucial for legal movement of goods within India.
Has there been any recent amendments or changes to Section 92 or related rules concerning the entry of coastal goods that I should be aware of?
Customs laws are subject to amendments and changes, often through Finance Acts or CBIC notifications. Always check for recent notifications and circulars issued by the CBIC regarding Section 92 and coastal goods procedures. TaxIntelHub.com provides updates on legislative changes, but professional advice should be sought for specific applications to your business.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Consignor Responsibility | The consignor of coastal goods is responsible for making an entry of these goods. |
| Bill of Coastal Goods Presentation | The consignor must present a bill of coastal goods to the proper officer in the prescribed form. |
| Declaration of Truth | The consignor must declare the truthfulness of the contents of the bill of coastal goods by subscribing to a declaration at the foot of the bill. |
| Prescribed Form | The bill of coastal goods must be in the format prescribed by the relevant regulations. |
Amendment History
No amendment records available for this provision.
Customs Act, 1962 Section 92 — Entry of coastal goods